FERC Monday approved Gulf South Pipeline Co. LP's proposal to build its East Texas-to-Mississippi Expansion Project, which would provide significant takeaway capacity for producers in the prolific Barnett Shale and Bossier Sands trends of East Texas, as well as for the sprouting liquefied natural gas terminals along the Gulf Coast..

The project calls for the construction of about 242 miles of high-pressure pipeline that would connect its existing system in DeSoto Parish in northern Louisiana to its 30-inch diameter pipeline in Simpson County, MS, as well as the addition of 110,604 hp of new compression. Gulf South, a subsidiary of Boardwalk Pipelines LLC, proposes to install two compressor stations, the Vixen and the Tallulah Compressor Stations, in Ouachita and Madison Parishes, LA, respectively, and make modifications to its Carthage Junction Compressor Station in Panola County, TX [CP06-446].

"The East Texas-to-Mississippi Expansion Project, as amended and conditioned, will benefit the public because it will provide an important new outlet to the interstate market for natural gas from capacity-constrained production areas that are expected to serve as rich supply sources," the FERC order said.

The project would be capable of transporting up to 1.7 Bcf/d of gas from the pipeline-constrained production areas in Texas to interconnects with other interstate pipelines for delivery in the Midwest, Northeast and Southeast. Gulf South proposes to build new interconnects or upgrade existing interconnects with Texas Gas Transmission, Columbia Gulf Transmission, Texas Eastern Transmission, Transcontinental Gas Pipe Line and Florida Gas Transmission at various points in Louisiana and Mississippi.

As a result of two open seasons, the pipeline said it has entered into binding precedent agreements with 12 shippers to transport 1.38 Bcf/d. The project, which has a price tag of $766.8 million, is expected to be in service this fall.

The Federal Energy Regulatory Commission also approved Gulf South's request to abandon 62,180 Dth/d of capacity on the proposed facilities by lease to Texas Gas Transmission.

©Copyright 2007 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.